Can Pearce Bespoke disapprove a transfer based on the purchase price and payment terms?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, Pearce Bespoke does not determine the purchase price in a transfer. However, Pearce Bespoke may determine that the purchase price and payment terms will adversely affect the transferee-franchisee's operation of the Pearce Bespoke Franchise.

This means that while Pearce Bespoke does not dictate the sale price, they can assess whether the financial structure of the transfer (price and payment method) puts the new franchisee at a disadvantage. This could be due to an unsustainably high purchase price or unfavorable payment terms that could hinder the new franchisee's ability to successfully manage the business.

If the franchisee finances any part of the purchase price, the franchisee agrees that all of the transferee franchisee's obligations under any promissory notes, agreements, or security interests reserved in the Pearce Bespoke Franchise are subordinate to the transfereefranchisee's obligations to pay Royalty Fees or any other amounts due to Franchisor under the Franchise Agreement. This protects Pearce Bespoke's financial interests by ensuring their royalties and fees take priority over any financing obligations the new franchisee has to the selling franchisee.